Honda 2011 Annual Report Download - page 33

Continuing to
Enhance Honda’s
Social Reputation
and Communication
with the Community
In addition to continuing to provide products incorporating Honda’s advanced safety and
environmental technologies, Honda will continue striving to enhance its social reputation by,
among other things, strengthening its corporate governance, compliance, and risk manage-
ment as well as participating in community activities and making philanthropic contributions.
To achieve these targets, Honda will make all possible efforts in pursuit of its vision for the
Company as it moves towards 2020: “To provide good products in a timely fashion, at afford-
able prices, and with low CO2 emissions”.
The Company temporarily suspended production at its sites located in Japan due to the effects
of the Great East Japan Earthquake that occurred on March 11, 2011, which included a short-
age of parts supplies. In addition, some of Honda’s business sites, such as Honda’s R&D subsidi-
aries located in Tochigi Prefecture, were heavily damaged. By April 11, 2011, the Company had
resumed production activities at all of its production sites; however, production of completed
automobiles at plants within Japan and production of components and parts for Honda’s
overseas sites had been operating at approximately half the normal rate. Production in Japan
had been nearly normalized in late June. Production at Honda’s automobile plants overseas has
been reduced as well and is expected to be nearly normalized around August to September.
In such circumstances, Honda will endeavor to normalize the supply chain continuously and
aims to return to normal production as soon as possible. Honda will work on sales pickup by
the recovery of production and bring about a recovery of its operations as soon as possible.
Taking into account this experience, Honda will strive to minimize risks that have surfaced due
to the earthquake disaster, including risks related to supply chain disruption.
In response to the occurrence of inappropriate activities at Honda Trading Corporation,
which is a subsidiary of the Company, and based on the investigation report and suggestion
for preventive countermeasures that was submitted to the Company’s Board of Directors by
the investigation committee established with external experts, the Company will build a system
to make appropriate business judgments in accordance with the applicable laws and regula-
tions and will further enhance corporate governance, increasing compliance awareness and
strengthening the risk management systems, including through the reexamination of person-
nel management systems.
Through these Companywide activities, Honda will strive to be a company that its shareholders,
investors, customers and society want to exist.
Therefore, in order to improve the competitiveness of its products, Honda will endeavor to
enhance its R&D, production and sales capabilities. Furthermore, Honda will continue to enhance
its social reputation in the community through Companywide activities. Honda recognizes that
further enhancing the following specific areas is essential to its success:
7.
Immediate Issues for
Attention
8.
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